Deutsche Bank predicted that bitcoin prices will rise nearly 40% from current levels to $28K by year-end. The bank’s analysts also warned that “crypto’s free fall could continue.”
Deutsche Bank’s Bitcoin Price Forecast
Deutsche Bank has reportedly predicted that the price of bitcoin will rise to $28,000 by the end of the year, Bloomberg reported on Wednesday, citing analysis by the bank’s senior economist and head of market strategy Marion Labore and research analyst Galina Pozdniakova reported.
According to their analysis, the price of bitcoin will rise 38% from its current price of $20,329. btchas traded closely with US stocks.
They noted that cryptocurrencies have correlated with benchmarks such as the tech-heavy Nasdaq 100 and the S&P 500 since November; the P 500 has fallen 21% since the S&P 500 has fallen 21% since the beginning of the year; the P 500 has fallen 22% since the end of the year; and the P 500 has fallen 22% since the beginning of the year. Deutsche Bank strategists expect the index to recover to January levels by year-end.
Laboure and Pozdnyakova compare bitcoin to diamonds, not gold, the publication said. They referred to a story about how De Beers, a major player in the diamond industry, was able to change consumer perceptions of diamonds through its advertising efforts.
“By selling ideas, not products, they have built a solid foundation in the diamond industry with $72 billion in annual sales and have dominated it for the past 80 years,” the analysts elaborated.
What is true for diamonds is also true for many goods and services, including bitcoin.
Deutsche Bank research analysts also described recent disruptions in the crypto space, including troubles at some crypto financiers such as Celsius Network.
“Stabilizing token prices is difficult because there is no common valuation model like within the public equity system. Additionally, the crypto market is highly fragmented,” they opined, warning.
Due to the complexity of the system, a crypto free fall could ensue.
Laboure previously said she could see bitcoin becoming “the digital gold of the 21st century” with “potential” and stressed that “people are always looking for assets that are not controlled by governments.” This economist noted that ” Gold has played this role for centuries … we must not forget that gold has also been historically unstable.”
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